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What I have said above applies principally to the Island and Kowloon, but there is, of course, the further problem of the 'leased territories', which by Treaty revert to China towards the end of this century. These are to all intents and purposes undevelopped. No one will put any money into them.. because they do not know what will happen. The prime importance of the leased territories now is that they provide the only possible sites for aerodromes and the best for seaplane landings. The present aerodrome at Kaitak, which is far too small is on leased territory and the new one which is contemplated if the capital can be raised is even further into it. There is every reason why Hong Kong should in the future play in regard to the air the same part it has played and still plays in regard to the sea, provided there is certainty that the territoty on which the aerodrome stands will remain for a specified period or permanently British.

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It may well be t hat the publicity over Lord Ammon's statements, even if based on an error of journalism, will force the British Government into making some statement on the future of Hong Kong. am sure that this question is constantly being considered in London. If there is any opportunity for the Ministry of Transport to intervene in this question, and it is one which very closely affects their interests in the East, they should, I suggest, support most strongly the issue of a public statement. Some of the biggest firms may take a "let well alone" attitude, but the new capital which would make this a better and cheaper port and increase the flow of goods to and from it is waiting for such a statement.

Of course I only see this at present from the angle of this Colony, but you may care to have this view now.

Perhaps I should say finally that the English language Press of Hong Kong is widely read in China.

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